Cramer: 'Realogy Is For Real'

Jim Cramer says Realogy is a play on the housing recovery. He tells TheStreet's Debra Borchardt the stock can go higher.

Now, they're starting to get worried that now prices are recovering they've got to jump in and get them.

Jim Cramer:

Well, affordability is going to go away. The houses are the cheapest, the money's the cheapest. The down payments have to be big.

Debra Borchardt:

Because we have to get away from the financial crisis and problems.

Jim Cramer:

Right. Smith was saying the FICO scores are 750 now for some of these homes and for people who are buying. The Fannie Mae ( FNMA) market has to happen, the banks don't want to hold on to these loans and a lot of banks are looking for 40-50% if it's investment property. The rental price is now well in excess of when you buy a home and your mortgage payment, it's still very right. They're going to build a million homes, Richard thinks it could be double that, if they had the ability to. There's a lot of restrictions because of Dodd-Frank.

Debra Borchardt:

All right. So, there's a lot of positive, fundamental things to say about Realogy. The volume though on the stock is five times its average volume. It is up again, it's not at its 52 week high.

Jim Cramer:

Well, they did do a 35 million share secondary, the stock was at 45 and then people said, "Listen, they preannounced the downside and they did stock." When you look over the quarter, it wasn't really to the downside. It was a fine quarter. The main thing is, is that Apollo ( APO) wanted to get its money out and they made it so you made money when they got out. They're making fortunes obviously. It's just a good story if you believe like I do that housing's going to continue to go higher.

Debra Borchardt:

All right. Well, there you have it. If you are looking for a housing stock you might want to take a look at Realogy. It is still not near its 52 week high and there may still be some room in this real estate stock.